Upcoming shipping price presentation tests - 5/27/21

Hey friends!

Remember that switch to prices that included shipping we made on wyze.com a few weeks ago? It turns out that people and search engines may not have enjoyed it as much as our core community members.

Since the change we have been investigating some disappointing traffic and sales trends. To understand these trends better, we are going to run some tests over the next few weekends. It’s possible you may fall into a test group if you shop on wyze.com. If that is the case, you may see some variations in how we present price and shipping charges. The tests will only run over a few weekends and impact a small percentage of users and products.

The total price price paid (including price + shipping) will of course remain the same for everyone. :slight_smile:

Your Wyze friends

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You could also look at better kerning for your prices so they read easier. On the smaller sizes, the decimal is easy to miss leading to some rather insane looking prices.

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Thank you for explaining that the prices are exactly the same regardless of which test group we are in.

I think this is a smart test. It would also be interesting to test on a new product launch, preferably one of a lower profile.

It would still be interesting to test whether a bulk order discount makes a big difference too. As I mentioned in the last launch thread, I noticed that my shopping habits were different this time around when I knew there was no reason to worry about doing a bulk order…I figured I could just order the other stuff I was considering “later” at my leisure instead of figuring out everything right now while I’m currently placing an order.

Still, it makes sense that keeping price and shipping separate do give an advantage on search engines, because people want to know what the cheapest cost is for an item, and a search engine will sort based on product price. If you include shipping in the price they pull, then it will look like a competitor is cheaper because the price the search engine compared didn’t include shipping…so even if the final result is that the competitor product costs more on the final bill than yours would cost, customers got tricked into choosing the competition because the search engine told them initially that they were the cheapest.

Wish does a lot of this…they make it look like products are free or just $1, then make the shipping atrociously higher than the other options to make up the difference. My daughter used to always beg us to get her stuff off wish because it was “FREE” but then you see that the shipping is really high and they were just manipulating the search engines.

On the other hand, not including shipping often causes people to pause at checkout and potentially cancel and change their minds. It’s a tough balancing act. This test should help you figure out what is more effective overall in the end result…driving more customers to look at you, or retaining and closing those checkouts. I can’t say I disagree with the test in any way from a business standpoint. Sounds like solid advice.

I’m sure you’ll figure out what is best. I’ll still get some Wyze stuff regardless of the end result, especially since the overall price ends up being basically the same anyway.

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Thank you very much for this feedback! It is valuable and I’ll get it to the team. :slight_smile:

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I’ve never understood what appears to be universal idea among sellers to make the last two digits of a price .95 or.98 or .99. Just round it up to .00 for goodness sakes !!!

For your test, you could round up to .00 in most cases so its easy to recognize that that item in the test includes shipping.

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I do see one problem with this thought. And I’m sure you are not the only person. It seems that Wyze has moved to special “pre-order” price model. That is, the price is lower during the pre-order sale and then goes up once that sale is over.

I guess it remains to be seen how this will be handled going forward. @WyzeGwendolyn can you comment on this?

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This is a very valid observation, especially when it comes to newly launched items. And you’re right, maybe I should go back and order more of those night lights right now just to be safe.

I guess the main part of my observation though, is related to how I was thinking more of how I used to always add more contact and motion sensors or more cameras into an order every time a new product launched. I would go around my house and think about where else I wanted to add more of these older devices. Then I would go add extra sensors, and cameras to the order before I submitted it, because it seemed to me like ordering a bunch of stuff all at once reduced the overall shipping a little bit as compared to ordering them all separately. Now none of that is a concern because the price would be the exact same whether I order everything all at once like I used to, or just order them one at a time over the next few weeks or whenever I get around to feeling like I really need them now.

The way it is now (shipping doesn’t change), I am more prone to procrastinate and not worry about adding everything in all at once on launch days. I just tell myself I’ll get around to ordering the other stuff later (stuff that definitely isn’t preorder pricing and is unlikely to change much like sensors or cameras) because they’re long out of preorder now.

But yes, you make an excellent point about bulking up specifically on pre-order items at launch just in case.

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I would generally recommend ordering multiples during preorder if you’re going to later for the preorder discount that @mvb mentioned. We are still looking into a way to add a discount if you buy in bulk but I can’t speak further to that one. :slight_smile:

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Because “forty seven dollars and some cents” reads in the mind as a lot less than “forty eight dollars.”

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Not me. I see xx.99 and I think, - every time. How stupid they think I am.

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It’s possible you are an outlier, but they are catering to the masses.

First, let’s clarify the difference between Theory vs Law: theory explains how and why something happens, Law explains what happens. Theory will never become a law with more evidence (hypothesis is the thing that is basically an educated guess, though most people use the word “theory” when they really mean hypothesis/guess/opinion)

The .99 thing could almost be described as a “Law” by these definitions because A LOT of sales research has been done on this issue and overwhelmingly the result has always indicated WHAT HAPPENS…Sales increase when they do this. That’s pretty much why everyone does it.

As for HOW and WHY this is observed, well that’s the theory side of it, and that is kind of up for debate to some degree. It appears that customers are much more swayed by the most significant first digits of a price, and sometimes the very last digit. Companies aren’t setting prices that way because they are GUESSING more people will buy it if they do that, they are doing so because of sales research and tests that have proven sales increase dramatically when they do that. To my knowledge, the first tests on this were conducted as back as the 1930’s and hundreds of tests and data crunches have been conducted ever since proving it overwhelmingly for decades with very few exceptions/outliers. Many studies have shown a difference of one to two cents increasing sales as much as 222% when it drops earlier digits to a new lower number.

In general there are significantly more sales when you show the price with a xx.99 instead of rounding up the extra 0.01. A lot of research has tried to figure out WHY that is, and that “WHY” is up for debate…but the result itself is nearly indisputable after hundreds of studies and crunching of absurd amounts of data testing it out.

Again, there are outliers, for example in certain industries, $1 even and $5 even actually sell more often than 1 cent less, and sometimes certain people have a stronger deviant aversion to uneven numbers (deviant compared to the vast majority of the population) than they have positive attraction to a slightly lower first digits of a price like most people in tests. It’s possible that you are one of those pricing outliers upon whom this doesn’t make a difference or may even backfire with. But companies look at this way. If they round up to .00 to appease less than 1% extra sales from the outlier people, they will LOSE as much as a couple hundred percent in sales for all the tons of people who otherwise might’ve purchased it because that sales and marketing technique works on the majority of people in our society. It makes no sense to round up to even numbers if it is going to reduce your overall sales. For the most part, customers aren’t rational, they’re emotional…and for whatever reason, in groups they are overall swayed significantly more by the earlier digits than the latter ones.

Then there is the anchoring technique…saying that the regular price is way higher, but rarely to never actually selling it at that rate, and convincing everyone they’re getting some kind of deal. People who would’ve never agreed or even considered it now get it because they first got anchored in at a high rate and now see it as a good decision.

I can say that in some of my businesses we’ve experimented with this and done data on it. We even did a hybrid test incorporating part of what you suggest. For example, we’d start by offering some people $40.00/hr for certain services, then others $39.00, and that 1 dollar made a HUGE increase in sales and closure despite it only being an insignificant 2.5% difference, a 3 looks way less than a 4 to start with, so our sales difference was huge.
Then we add anchoring to that. Maybe we had been doing a lot of services in the twenty something dollars per hour range and now we want to increase by 50-100%…so maybe test out by starting to tell people that the standard rate is something like $50/hr but we’ll go to $39/hr for various reasons and suddenly everyone wants to do more business, both new customers and previous customers.

Again, there is the WHAT, which has been pretty indisputably demonstrated for almost 100 years now with massive amounts of data and tests and research…the WHAT is pretty solid, and that’s why everyone complies to it…they get more sales. The how and why it happens that way is somewhat debatable. And there are definitely exceptions and outliers…but it’s a smart business move unless you can prove a particular outlier or exception far outweighs the standard outcome.

But to each their own…it’s just that most businesses are in it to maximize profits based on the greatest amount of people.

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I think this may be totally an American thing, to make the price look cheaper. I definitely didn’t see it in Greece, but I didn’t really pay attention to it in England or Germany.

If you are not in America, do you see prices ending in x.99? Heck, even gasoline prices in America end in 9/10 of a cent, lol.

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The other countries I have been to usually keep things at even numbers for THEIR convenience. Most of them dealt in cash, and so it was very inconvenient to do business where they were required to give tons of change instead of simple exact transactions.

Americans don’t care as much about the convenience or inconvenience of giving or receiving change nowadays because almost everyone uses some form of digital payment in an exact amount with no added effort. Additionally, American corporations are obsessed with maximizing profits and business analytics showing what gives them even the very slightest edge or fraction of a percentage increase. I think that’s the big difference.

ahhh a fellow nerd :wink:

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I agree! Who believes that the cost of shipping 3 items is three times the shipping cost of one item? Is WYZE being fair to those who buy multiple items? I think not!

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I must agree. It’s disappointing to see that the prices are far more expensive with shipping included. I was just about to buy 4 Can Pam at $30 each plus shipping. For two shipping was $10, At Three shipping was $14 and four shipping was $16. The increments for shipping were justified as the weight and size was more.
I ended up only buying two for $76 ( Old price would have been $70, For three $105 instead of $114 and four would have been $136 not $152 shipping included. The more you buy instead of being rewarded for larger quantity at a lower price and less expensive for shipping, your’re being charged way more each item you add. Why no volume discounts??? That’s not what I learned in Business school.

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Rest assured they already announced before they even changed things that they plan to do this, it was just something they had to work out first.

I have somewhat been holding off on some non-priority ordering to see if a bulk discount will show up sometime this summer first.

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When did shopping become such a complicated issue. You explained the pricing structure change clearly. I would think the average person could understand. I guess not, lol.

Hey @WyzeGwendolyn

You may end up with some serious bounces and generally unhappy potential customers if your team isn’t displaying consistent information to search engines. Testing things is great, but it looks like you’ve got some other issues as it pertains to prices and search engines. Just as a quick example - the Wyze Watch page is marked up with Product Schema (which is great) and Google is making use of that schema to show product pricing prominently in the results page (see 1st screenshot) - but unfortunately your team’s got a severely incorrect price listed in that schema (or perhaps I SEVERLY over-paid for 2 of them a few days ago at $25 a pop).
The second screenshot is of the source of the page, showing where the product schema on the page reflects that inaccurate price. Likely, what happened is that someone put in the band pricing for the watch as well. Should be a quick fix - just update the schema and perhaps resubmit the page for indexing to have Google update the rich results.
I can assure you - if someone sees the $9.98 pricing on Google and then sees the $25 price tag on your site, they are likely going to be a bit upset…perhaps even read about price hikes…and just move on.
Hope it helps! :wink:
T.


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